India Gas Supply: The energy sector faces a significant challenge as the ongoing conflict between Iran and the US has disrupted nearly 25% of the country’s natural gas imports. The Indian government is actively seeking alternative procurement routes to mitigate the impact, according to senior officials.
The Strait of Hormuz, a crucial passage for nearly 50% of India’s oil imports, has been closed by Iran amidst the conflict. This has led to a surge in fuel and gas prices, creating concerns in a nation that relies on imports for approximately 85% of its energy needs. Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas, highlighted that of the 189 million metric standard cubic metres of natural gas consumed daily, 47.4 million are affected by force majeure conditions.
Efforts are underway to procure natural gas through alternative routes, with two LNG cargoes already en route to India. While the crude oil supply remains secure, with imports from about 40 countries, the government is diversifying sources to ensure stability. Currently, 70% of crude imports bypass the Strait of Hormuz, compared to 55% previously, according to Sharma.
In response to the crisis, the Indian government has prioritized gas allocation to key sectors, invoking the Essential Commodities Act on March 9. Domestic LPG production has been ramped up by 25% to meet household demands, while non-domestic supplies prioritize hospitals and educational institutions. A committee is reviewing allocations to ensure fair distribution.
Looking ahead, the government is absorbing increased LPG costs to shield consumers, with compensation approved for oil marketing companies. Efforts to prevent panic buying and hoarding are also in place, as authorities work to maintain smooth delivery amidst the ongoing geopolitical tensions.
Published in SouthAsianDesk, March 12, 2026
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